Duties and powers of developer during developer’s management period (Developer)

Duties

1. to establish maintenance account;
2. to establish sinking fund account;
3. to determine and impose the Charges to be deposited into the maintenance account;
4. to determine and impose the contribution to the sinking fund to be deposited into the sinking fund account;
5. to effect insurance according to this Act;
6. to comply with any notice or order given or made by the local authority or any competent public authority requiring the abatement of any nuisance on the common property, or ordering repairs or other work to be done in respect of the common property or other improvements to the common property;
7. to prepare and maintain a register of all parcel owners of the buildings or lands intended for subdivision into parcels;
8. to ensure that the accounts required to be maintained by the developer under this Act are audited and to provide audited financial statements for information to all purchasers;
9. to enforce by-laws;
10. to do such other things as may be expedient or necessary for the proper maintenance and management of the buildings or lands intended for subdivision into parcels and the common property;
11. to ensure that a separate and distinct area is set aside out of the common property of the development area for the sole purpose of an administration office for the carrying out of duties of the developer under this Act;
12. to be prepared such accounts and records of accounts as will sufficiently explain the transactions of the accounts and enable true and fair balance sheet, income and expenditure statement and profit and loss statement to be prepared for the period starting from the commencement of the developer’s management period;
13. appoint an approved company auditor to carry out the audit of the accounts annually;
14. file with the Commissioner a certified true copy of the audited accounts together with the auditor’s report within fourteen days of the accounts being audited;
15. to establish a joint management body;
16. to hand over to the joint management body;

Powers

1. to collect the Charges from the parcel owners in proportion to the allocated share units of their respective parcels;
2. to collect the contribution to the sinking fund from the parcel owners;
3. to authorize expenditure for the carrying out of maintenance and management of the buildings or lands intended for subdivision into parcels and the common property;
4. to recover from any parcel owner any sum expended by the developer in respect of that parcel in complying with any such notice or order referred to under paragraph (2)(d);
5. to do all things reasonably necessary for the performance of its duties under this Act;

Notes

the developer shall not enter into any contract relating to the maintenance and management of a building or land intended for subdivision into parcels and the common property in the development area for any period after the expiration of the developer’s management period.